This weekly newsletter pulls together summaries of the top ten most-read Insights across Equity Capital Markets on Smartkarma.
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1. Muyuan Foods Hong Kong IPO Valuation Analysis
- Our base case valuation of Muyuan Foods Co (2714 HK) is implied market cap of HK$368 billion post IPO which is 24% higher than HK$297 billion at HK$39 per share.
- Our base case valuation of Muyuan Foods is based on P/E of 12.9x our estimated net profit of RMB25.3 billion in 2027.
- Our target P/E multiple of 12.9x is 20% higher than the comps’ average P/E multiple in 2027.
2. Montage Technology (6809 HK) IPO: Decent Upside Potential
- As a global leader in fabless IC design, focusing on interconnect solutions for cloud computing and AI infrastructure, Montage Technology (6809 HK)‘s 3-year EPS CAGR will reach 43.2%.
- We assess a fair price at HK$147.4, or 45.8x FY26 PER, a 20% premium over Rambus (RMBS US), the third-largest player globally.
- This represents a 37.9% upside, also putting it in line with the average of 28% discount of the H-share IPOs to A-shares since 2025.
3. Shenzhen Woer Heat A/H Listing: Copper Cable Player for AIDC Buildout
- Shenzhen Woer Heat Shrinkable Mat (002130 CH), aims to raise around US$400m in its H-share listing.
- It is a global manufacturer primarily engaged in sales of high-speed data communication and electrical power transmission products, with a core focus on heat-shrinkable materials and telecoms cables.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
4. Muyuan Foods (2714.HK) – Thoughts on IPO Pricing and Valuation Outlook
- MUYUAN plans to issue 274 million shares at a maximum price of HK$39/share. If based on net profit forecast of 2025, 2026, 2027, P/E would be 11x, 9.5x, 7.7x, respectively.
- Reasonable valuation of MUYUAN-A share and MUYUAN-H share would be higher than peers such as Wens Foodstuff (P/E of 12.9x by Jan.30), WH Group (P/E of 9x by Jan.30).
- If industry average valuation is used as the benchmark, based on 2026 forecast, the IPO pricing leaves decent room for stock price increases for both MUYUAN A and H share.
5. Shin Etsu Chemical (4063 JP): The Current Playbook
- Since the announcement of the US$1.0 billion secondary offering, Shin Etsu Chemical (4063 JP)’s shares have declined 6.3% to the undisturbed price of JPY5,476 per share (27 January).
- It is instructive to look at recent large Japanese placements to understand the potential trading pattern. Shin Etsu’s share decline is lower than the median of recent large placements.
- The offering will likely be priced on 4 February. The average large Japanese placement tends to generate positive returns.
6. Muyuan Foods Hong Kong IPO Preview
- Muyuan Foods Co (2714 HK) is getting ready to complete its Hong Kong IPO on 6 February 2026. This listing involves an offering of 273.95 million H shares.
- The offer price is capped at HK$39 per share. The offering involves raising approximately HK$10.7 billion ($1.4 billion USD).
- Muyuan Foods is the largest company globally in the hog farming industry by both production capacity and hog sales volume.
7. Muyuan Foods H Share Listing (2714 HK): Trading Debut
- Muyuan Foods Co (2714 HK) priced its H Share at HK$39 to raise HK$10,684 million (US$1.4 billion) in gross proceeds. The H Share will be listed tomorrow.
- I discussed the H Share listing in Muyuan Foods H Share Listing: The Investment Case and Muyuan Foods H Share Listing (2714 HK): Valuation Insights.
- Muyuan’s international and retail oversubscription rates were below the median of recent large AH listings. The AH discount remains attractive.
8. Montage Technology Hong Kong IPO Preview
- Montage Technology (6809 HK) is getting ready to complete its Hong Kong IPO next week (first date of trading is scheduled for 9 February).
- Shares were priced at HK$106.89, the maximum of the marketing range, raising HK$7.04 billion (US$901 million). This values the company at roughly HK$180.36 billion (US$23 billion).
- Montage is one of only three global suppliers of DDR5 memory interface chips (alongside Renesas and Rambus), holding a 36.8% market share.
9. Aequitas: Wuxi Lead Intelligent Equipment A/H Listing – Quality Asset, Slightly Tight Pricing
- Wuxi Lead Intelligent Equipmen (300450 CH), aims to raise around US$550m in its H-share listing.
- WLIE is a global platform-based intelligent equipment enterprise, offering intelligent equipment and solutions to a wide range of emerging and high-end manufacturing industries.
- We have looked at the company’s past performance in our previous note. In this note, we talk about the pricing.
10. Aequitas: Lingyi ITech A/H Listing – More Smartphones than AI, but Has Robotics
- Lingyi iTech Guangdong (002600 CH, LIT), an intelligent manufacturing platform, aims to raise around US$1bn in its H-share listing.
- LIT offers a full range of development and manufacturing capabilities that cover core materials, high-precision functional components, modules and assembled systems for diverse end products.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
